The performance of software funds over the past 3 months has been rather dismal, and that's putting it mildly. The 3-month returns of all IT funds have declined by at least 30% over the last 3 months.

The technology, media, telecom (TMT) bloodbath in the stock markets has taken its toll on software funds. A study conducted by personalfn.com reveals that all software funds with a minimum 3-month history have registered an alarming fall of over 30%. The table below says it all.

Open-ended IT Schemes	NAV (Rs)	3-month growth
Chola Freedom Tech. Scheme (Cum.)	14.0	-32.0%
Tata IT Sector Fund	10.6	-45.2%
UTI Sector Fund - Software	18.3	-46.4%
Birla IT Fund (Gr.)	17.5	-46.4%
KP Infotech Fund (Gr.)	24.1	-48.7%
Alliance New Millennium (Gr.)	7.0	-51.9%
Magnum Sector Funds - IT Fund	12.5	-56.0%
IL&FS eCOM (Gr.)	5.4	-60.2%

Out of the 8 IT funds listed above, as many as 7 have witnessed an erosion of over 45% in their NAVs, with 3 of those 7 funds registering a decline of over 50%! And this only includes IT funds that are at least 3 months old. There are other IT funds with a history of less than 3 months and they have fared no better, as indicated by the table below.

Open-ended IT Schemes	NAV (Rs)	1-week	1-month growth
K Tech	6.9	-4.6%	-12.6%
Pru ICICI Tech	5.1	-5.4%	-22.7%
DSP ML Technology.com	7.5	-8.9%	NA

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